18 Aug 2009 11:18

VTB shares likely to be offered to market at 4.8 kopecks

MOSCOW. Aug 18 (Interfax) - New shares issued by VTB are have now been valued ahead of their placement on the market, a source close to the banking group told Interfax.

"It'll probably be 4.8 kopecks," the source said.

"The placement price already exists. The supervisory board will give its final approval when it meets next week," the source said.

VTB traded at 4.1 kopecks a share on the MICEX Stock Exchange on Monday. The stock soared 5.1% to 4.31 kopecks in early trading on Tuesday following the report that the new shares could be offered at more than their market price.

Earlier reports said the VTB board would approve the share price once a rights offering expires on August 24.

VTB 24 , which is VTB's retail banking arm, is accepting applications from shareholders wishing to exercise rights to buy up to 90 billion rubles in new stock between August 5 and 24 inclusive. The placement price for the shares will be decided when the rights offer expires. The placement price for shareholders exercising rights will be the same as for other entities.

VTB's share capital could go up 2.34-fold to 157.241 billion rubles if the whole 90 billion rubles is placed. VTB could place 10% of the new share issue abroad.

The state currently owns 77.5% of VTB, institutional investors own 17.7% and individuals own 4.8%. Russian investors own 12.2% and foreign investors own 10.3%.

The government's stake in VTB is not expected to exceed 90% even if existing shareholders do not exercise their right to buy the new shares, VTB's chief financial officer, Nikolai Tsekhomsky, said at the bank's AGM at the end of June. He said the government's stake would be decided after the supervisory council decides on the placement price, probably in August.